Labyrinth Resources Limited (ASX: LRL)(‘the Company’ or ‘Labyrinth’) advises that it has agreed to sell the Labyrinth and Denain gold projects in the Abitibi region of Quebec, Canada (‘Projects’) along with related assets and mining information (together, ‘the Canadian Assets’) for US$3.5 million cash.
The sale of the Canadian Assets follows Labyrinth’s strategic decision to switch its focus to generating shareholder value through exploration and resource extension at its Comet Vale tenement package in Western Australia.
The Company acquired the Canadian Assets in September 2021 after entering into a Project Acquisition Agreement (‘PAA’) with G.E.T.T. Gold Inc. (‘GETT’). The original terms and conditions of the PAA and subsequent variations were set out in the Company’s ASX announcements dated 2 September 2021, 9 November 2022, 3 April 2023, 1 May 2023 and 4 January 2024.
As part of the process to sell the Canadian Assets, Labyrinth has entered into a Sale and Purchase Agreement (‘SPA’) with Gold Projects WA Pty Ltd (‘GPWA’). GPWA is a special purpose vehicle set up to facilitate the transaction. The shareholders of GPWA are Carey Group Holdings Pty Ltd (a First Nation mining, civil and construction company) holding 51% and Erasano DMCC (‘Erasano’), a precious metals trading company based in Dubai, holding 49%.
GPWA’s obligations under the SPA are guaranteed by Erasano.
Neither GPWA, Erasano, their directors or proposed directors, are related parties or substantial shareholders of the Company, nor entities referred to in Listing Rule 10.1 or associates of any of them.
